Six Sigma Global Institute (SSGI) Project Management Professional Certification Practice Exam

What does the Earned Value Method evaluate in a project?

1. Time and resources needed for project completion

2. Client satisfaction with project outcomes

3. The progress of the project through measurements of time and money

4. Team effectiveness in project execution

The correct answer is: The progress of the project through measurements of time and money

The Earned Value Method (EVM) is a powerful project management technique that integrates the measurement of project performance and progress in terms of time and cost. By evaluating the planned progress against what has actually been accomplished, EVM provides a clear picture of how much work has been completed and how much money has been spent at any given point during a project. Using EVM, project managers can calculate key metrics such as Cost Performance Index (CPI) and Schedule Performance Index (SPI), which indicate whether a project is on track regarding budget and timeline. This method allows for early detection of issues, enabling proactive management actions to keep the project aligned with its goals. While other aspects of project management, like team effectiveness or client satisfaction, are important, they do not fall within the primary focus of the Earned Value Method. Instead, EVM centers specifically on quantifying progress using measurable metrics related to both time and financial expenditure. This makes it an invaluable tool for assessing the overall health of a project and ensuring that it stays within its defined parameters.